I'll give this one a try. Don't think I'll get a finished entry in time, IMHO the challenge is too complex for one month left. But I'll try some things and want to share them with you.

Before modelling and stuff, I started with some simulation tests to see if I can pull of this thing.

Here's a first test. Maybe I'll go for a mega crash on the highway with lots and lots of cars involved. So this simulation is not to complex when dealing with a single cars damage, but I can set up and simulate lots of cars pretty easily. At the moment I only use simplistic stand-ins, fof a final I'd use simple versions of the cars used as wrap deformers for a more high poly version.

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